The Tesla drama plays on, today giving an excellent opportunity to short.
Two days ago, it dropped 15% on a similar rejection at the 50ma.
Yesterday and today, it rallied, probably to front run this "positive news" that came out today (Tesla beating production estimates). However, as the news came out, it is again being sold off at the 50ma. It is also backtesting a large triangle breakdown.
Good place to short with limited risk. Tight stop above 50ma. I recommend short call spreads as the premiums are very high on their options. You can find spreads that have equal risk/reward (max gain == max loss), which is good for such strategy.
Two days ago, it dropped 15% on a similar rejection at the 50ma.
Yesterday and today, it rallied, probably to front run this "positive news" that came out today (Tesla beating production estimates). However, as the news came out, it is again being sold off at the 50ma. It is also backtesting a large triangle breakdown.
Good place to short with limited risk. Tight stop above 50ma. I recommend short call spreads as the premiums are very high on their options. You can find spreads that have equal risk/reward (max gain == max loss), which is good for such strategy.